I have also seen talk of a $7500 "credit" to stimulate new home purchases.. but it turns out that's actually a loan also. I'm not sure if that's part of this bill; just saw reference to it in passing.
Yes there is this provision in the bill. It is, as I understand it, essentially an interest free loan paid back over several years (10 I think ) . There is an income limit , and you must not have owned a home for at least the last 2 years. You deduct the $7500 max from your income taxes , and pay it back slowly - or when you sell the home.
Our son has been saving up a down payment for a couple of years and is getting ready to buy his first home . While an interest free loan is nice for him, It seems like a shortsighted idea to try and jump start getting new blood into the housing market. Anyone who buys a home because they can get a tax break in one year - and then have to pay it back slowly - probably does not plan too well. Then in a few years we will find they too can't afford all those nasty tax repayments....